Jul 28, 2016
Maple Leaf Foods beats estimates on lowering operating costs, increased pricing
Reuters
Canadian meat processor Maple Leaf Foods (MFI.TO) reported a quarterly profit that squeezed past estimates as lower operating costs and increased pricing more than offset a fall in volumes in its meat products business.
The company, whose brands include Schneiders and namesake Maple Leaf, recently completed a program started in 2010 to boost earnings by shutting some plants and modernizing others.
Adjusted operating earnings for the meat products segment rose to $62.9 million in the second quarter ended June 30, from $17.7 million a year earlier.
The company, which is one of Canada's biggest pork processors, reported net earnings of $31.4 million, or 23 cents per share, compared with a loss of $7.5 million, or 5 cents, a year earlier.
On an adjusted basis, Maple Leaf earned 32 Canadian cents per share, 1 Canadian cent above analysts' average estimate.
Maple Leaf, whose agribusiness unit supplies livestock to the meat products group, said total sales rose 4.1 per cent to C$854.6 million.
Analysts on average had expected revenue of $847.4 million, according to Thomson Reuters I/B/E/S.